The figures for January show that while total transactions grew by 13.5% year-on-year, spend increased by only 5.8%. This compares with transaction growth of 10.8% in January 2024 and an 8% uptick in spend.

Travel, though, clearly remains a consumer spending priority; Barclays latest Consumer Spend Report showed growth in transactions with agents was second only to electronics, highlighting the health of the agency sector.

Figures for airlines showed healthy growth in spend of 5.5%, but transactions fell back by 0.5% last month.

In total, credit and debit card spending grew by 1.9% year-on-year in January, the highest uplift since March 2024, but lower than the latest (CPI) inflation rate of 3.2%.

Barclays also noted falling consumer confidence in the UK economy, down five percentage points to 21%.

It added: “For the third month running, 86% of consumers are concerned about rising food prices, while 64% are looking for ways to get more value from their weekly shop, also on par with November and December.”

Barclays’ head of retail Karen Johnson said January’s figures “are a positive signal that non-essential spending should remain strong in 2025”.

The bank’s chief UK economist Jack Meaning added: “With the economy looking like it stagnated in the second half of last year, we’re expecting GDP growth to pick up to 0.9% in 2025.

"This will have been aided by Thursday’s reduction in interest rates by the Bank of England. We expect Bank Rate to fall to 3.5% before the end of the year, which should give a further boost to consumers who will once again feel the pinch as inflation rises in the coming months, albeit it temporarily.”